Southern Indian states have surged ahead of the northern states post the economic liberalisation of 1991 with their share growing to around 30 percent of the country’s GDP in FY24, according to a study by the prime minister’s economic advisory council highlighted on September 17. On the other hand, West Bengal despite being a maritime economy has performed worse with its per capita income shrinking relative to the national economy.
The report indicates that Southern states have made impressive gains, playing a crucial role in boosting India’s GDP and showcasing higher-than-average per capita incomes.
Here’s a summary of the report’s findings of all states:
· Karnataka, Andhra Pradesh, Telangana, Kerala, and Tamil Nadu now contribute 30% to India’s GDP, reflecting substantial economic advancement.
· Despite its earlier economic prominence, West Bengal’s contribution to the national GDP has dwindled from 10.5% in 1960-61 to 5.6%. Its per capita income, once above the national average at 127.5%, has dropped to 83.7%, falling behind even traditionally lagging states like Rajasthan and Odisha.
· Bihar’s economic position has stabilized in recent decades but it still remains significantly behind other states.
· Odisha has made notable progress, transforming from a previously underperforming state to one that shows significant growth.
· Maharashtra continues to be a leading contributor to India’s GDP, although its share has decreased from over 15% to 13.3% in recent years. Nevertheless, Maharashtra’s per capita income has risen to 150.7% of the national average by March 2024.
· Haryana and Delhi have shown consistent economic performance, with Delhi having one of the highest per capita incomes. In contrast, Punjab has seen a decline in its relative per capita income post-2000, whereas Haryana has surged ahead.
· Uttar Pradesh and Bihar, among the poorest states, have seen their GDP contributions shrink. Uttar Pradesh’s share fell from 14% in 1960-61 to 9.5%, and Bihar contributes only 4.3% to the national GDP.
One of the most curious cases in the report is West Bengal, which has seen a steady decline despite its early economic strength. Once one of India’s top contributors, with 10.5% of the national GDP in 1960-61, West Bengal’s share now stands at 5.6%.
